Estate Planning As A Part of Strategic Philanthropic Giving

Estate planning can be your unique selling proposition to encourage philanthropy. When you look at individuals who are significant donors to charities, many of them have already written wills and established financial plans. This type of planning allows them to support their favourite causes by following their strategic philanthropic plan.

Strategic philanthropy usually takes place between family members, financial advisors, tax and legal planners. Just as important as retirement planning, a philanthropic plan can be drafted in tandem with the development of an estate and financial plan to include charitable giving in the present and in the future.

Recently, Imagine Canada made recommendations in their Personal Philanthropy Project. The aim of the study was to look into philanthropy among affluent donors.  The key recommendations within the Imagine Canada report highlights four areas for action. I will address one of the recommended action items – the development of a giving calculator which enables individuals to understand the best ways to give. The other three action items have been applied by charities over the years to increase giving to major gift campaigns with consistent levels of donor engagement such as “predetermined giving tiers” and “peer influence”. Unfortunately, these actions bring success, usually occurring in larger organizations with well trained volunteers and senior staff helping to guide the process.  What happens in the small to medium sized charitable organizations, how can they compete? The great equalizer is education through illustration of different donation scenarios.

I classify the majority of charity donors as “transactional donors”.  The word “transactional” refers to charitable giving in the form or cash, check or credit card. This is typically in the comfort zone for most donors.

Meanwhile, a giving calculator can benefit the following groups: 1) the individual donor and their families; 2) the individual’s advisors (tax planner, financial advisor and legal advisor); 3) the charity and its leadership team because it can illustrate the best ways to give from assets that are highly taxable. To name a few, assets such as stocks, mutual funds, and registered investments are good vehicles that provide the donor with the maximum tax relief of assets with taxable capital gains. The integrated approach of estate planning, guided by the demonstrations in the giving calculator, will result in a larger philanthropic donation.

Check out our very own giving calculator, Giftabulator®, for the best ways to give by visiting www.giftabulator.com

- Bill

FUNDING matters – 20 Years of Success

Last month was a great one for me. I noticed a number of individuals who liked or congratulated me on Linkedin and Facebook in celebration of FUNDING matters Inc.’s 20th anniversary and it reminded me of how far along I’ve come since its inception.

I would like to give you an idea of what running FUNDING matters Inc. has taught me.

I am no different than any other person who has been given the opportunity to be a part of societal change.  Ever since I started working with charities, the biggest fear continues to be not meeting the expectations and results of organizations I serve.

The challenge each client has is unique. Therefore, we have to customize our solutions.

The key is being able to think outside of the box and use the 20 years’ worth of experience to move in the right direction. Often what people think is a good solution for a charity is not necessary the best option. For example, you might think that an individual gives to a charity because the person likes the initiatives that the charity represents. Of course, the initiative is of utmost importance, but donors will not agree to give before they fully understand their own financial situation. The fact of the matter is that 70% of individuals do not have an estate plan, which is why the discussion about the ramifications of their donations must happen early in the discussion. For me, that is always a topic I raise the first time I meet with a potential donor.

Because of this, in the 20 years since I started FUNDING matters Inc. I have become a better strategist for charities, their boards, their executives, and countless families and individuals with whom we interacted with regarding their philanthropy.

In many cases I give full marks to the organizations who allowed us to build our uniques strategies with and for them. Without their leap of faith in us, it would not have been possible to know if our ideas were achievable. I look forward to 20 more years of helping charities and the fundraising that is to come.

- Bill

Financial Wellness is the Cure for Philanthropy

We are all familiar with the phrase healthy, wealthy and wise. I wake up each day as do many of you thankful for our health and the opportunities ahead. We know that there are many factors which affect how we feel about ourselves, some of these factors which are out of our control and others we can do something about. Exercise, eating well, spending time with friends and family are all important activities. They also ground us and de-stress our daily lives.

One of the areas which most of us fail to address are decisions which can lead to financial success or failure. At various stages in our lives we have dealt with financing for a home, a new addition to the family, the needs of a growing family with school or aging parents. For many this consumes a great deal of their day and their lives. These factors can weigh very heavily on one’s health and normal daily activity.

For many over the age of 50 years of age, 60% do not have a current estate plan. This is a significant indicator that financial planning may not be current or in order for many of these individuals.

According to Manulfe’s Financial Wellness Index, 40% of respondents indicated they were financially unwell. Areas of concern expressed in the Study indicated they worried about debt (82%), not saving for retirement (60%) and stressed due to their financial position (67%).

This poses a very major challenge for the charitable sector. Philanthropic success for the charitable sector depends on financially well donors. That is why working with financial, tax and legal advisors for charities is essential. Charities can play a vital role in helping to initiative the discussion with their members and their advisors as financial wellness can lead to effective philanthropy. In the absence of professional advisors involvement in their clients philanthropy either in giving now or giving later the likelihood of a current donation or estate gift is remote.

Granted the number of individuals who are surveyed if they would leave an estate gift to charity is significantly higher than what is received from individuals estates (4%). The mindset of the donor can only be activated by education and illustration in what might be the ideal scenario for any such philanthropic giving.

This is a critical time for charities as they work hard at meeting budgets and building a sustainable model for their operations. If charities are to continue to do their good work, they will need to be better aligned with the understanding that they too are partners in the health and financial wellness of their donors.

Find out more at with FUNDING matters Inc. and our GiftabulatorNOW software.

- Bill

The Most Important (and Earliest) Fundraising Lesson

My earliest fundraising lesson began in 7th grade when my teacher asked the class, “Do you want basketball hoops or not?”  The answer was easy but getting there was hard.

My school did not have a gym. The closest thing it had to one was a basement. What some kids took for granted at other schools, my school learned to do without until we were given an opportunity to change all of that.

The big question was if we wanted basketball hoops, how were we to raise the money to buy them?

Fortunately, because of  our teacher’s encouragement and a parent who was willing to donate a piece of art, we had the means to hold a fundraising raffle. Quick math told us how many tickets needed to be sold in order to have enough to buy the hoops.

And so the process began.  We had to determine how quickly we had to sell these raffle tickets and who will buy them.  It was clear that my immediate clients would be my parents, grandparents, aunts and uncles.

Then who else was the obvious question.

Door to door knocking was the next step. Before I set out for ongoing disappointment and rejection, I knew that I had to have a good pitch. I needed one that was not selfish but compelling. It needed to answer why I am at a stranger’s door asking them to buy a raffle ticket for a painting, who I represent, and what the money is for. I learned that not everyone is there to support my project and not take it personally – early lesson for a 13 year old.

This approach is the one that I have used many times in my life and for every campaign I have undertaken .

The end result of the basketball hoops fundraising was a success due to our persistence. Without our active desire to make it happen, it never would have taken place.

You too have the opportunity to influence change and go after your own “basketball hoops.” It is with the same desire and convincing pitch, that our campaigns either win or lose.  Each of our organizations are worthy, important and deserve the funding they request.  It all comes down to our intense commitment to pursue our organizational and personal goals and objectives.

- Bill

Presentation: Peterborough Estate Planning Council (PEPC)

William Petruck, President of FUNDING matters Inc. is presenting at the Peterborough Estate Planning Council (PEPC) meeting.

Presentation Overview:

Prince died at age 57 without a will. Over 60% of Canadians over the age of 50 do not have a current estate plan and of those with a current estate plan only 4% have a provision for a charitable bequest.

More money is directed to CRA each year from taxable capital gains than is donated to charity. Professional advisors can help shape their clients’ legacy for their families and their communities. Attendees will walk away with the tools and techniques to engage in discussions with their clients.

William’s company created a unique tool called Giftabulator® NOW. It is an Estate, Financial and Philanthropic planning app that will show you how to minimize taxes (everyone’s dream) while making the world a better place. Whether you are a charity competing for donor dollars or a financial professional offering clients a cutting-edge service, Giftabulator® NOW is an invaluable tool that will demonstrate the potential giving capacity of every individual. It is ideally suited for: Charitable Organizations, Financial Professionals, Estate Planning Needs.

CAGP Conference – Scaling New Heights

I am excited to be presenting and exhibiting at the 2016 CAGP conference in Banff from April 6th-8th. My session will be geared towards the discussion with donors and the interests, concerns and fears they have when making either a major or planned gift. The session will be on Wednesday, April 6th from 11:15am – 12:15pm

Please drop by the FUNDING matters Inc. booth #8 and say hi if you are attending the conference. We will introduce you to Giftabulator NOW 2.0 and show you how to make it your major gift and planned giving companion in your discussions with donors.

I look forward to seeing you.

For more information please visit: https://www.giftabulator.com/giftabulator-now.php or http://fundingmatters.com.

You can also visit the CAGP Conference website here: http://www.cagpconference.org/

Giftabulator NOW 2.0 Alpha Version

I wanted to give you an update on Giftabulator NOW, as we have been making continuous improvements in order to bring you and your donors a tool that is educational and easy to navigate for major and planned giving.

We now have several key organizations who have joined other leading charities on board as we grow each day. Organizations such as the Royal Ontario Museum, Salvation Army, Shevchenko Foundation, Canadore College, and Camosun College Foundation to name a few, are realizing the true benefits of Giftabulator NOW and the importance of putting their donors first.

We’d love to give you a sneak peak with Giftabulator NOW 2.0 the alpha version and get your opinion. Please contact us at wpetruck@fundingmatters.com or 416-249-0788.

Some of the new features include:

1. French version available
2. More intuitive user interface
3. Videos walkthrough for donors
4. Staff Resources section with videos, sample letters, and much more.

Thank you again for your support. Your feedback is always welcome. Together we can do this.

William Petruck

President and CEO, FUNDING matters Inc.

Mid-Level Donors are Important

I came across an insightful article in the Chronicle of Philanthropy called Making the Most of Mid-Level Donors [hyperlink to article].

The author states, “Mid-level donors are often overlooked at non-profits, even though they are among the most generous and loyal supporters, and may have the potential to give much more if they are treated well. How can your organization attract, keep, and inspire mid-level donors to give more? ”

The reality is that these mid-level donors are the backbone of your organization’s annual funding. The issue is how to convert many of these donors into major gift and planned giving donors. The key is to provide the tools which can illustrate the benefits associated with a larger donation and indicate where the funding can be sourced.

Since most donors give from the “wallet” in the form of a credit card, cheque or cash, the ideal major gift should be sourced from appreciated assets with a taxable capital gain. Why is this important for your donors to know? Illustrating a donation from an appreciated asset with a taxable gain will help the donor understand the benefit associated with a donation in which they will be paying tax on if not used partially or wholly as a charitable gift.

To see more illustrations please check out www.giftabulatornow.com.

Donate to Eliminate

I was encouraged to see the Laura Saunders’ article Tax Smart Philanthropy Made Easy in the Wall Street Journal (click link here). This has been a key element of what we have been speaking to advisors, charities and individuals about in getting their estate, financial houses in order to minimize taxation on their capital gains now and in their estates. Tax planning means that advisors and their clients need to take an inventory of all assets now and over time to ensure that what is left over and taxed can be put to other uses like philanthropy.

The article talks about the increasing popularity of Donor Advised Funds such as those offered by Fidelity, Schwab and Rowe. The other option is for donors give directly to charity and see the impact of their giving. The Donor Advised Fund model is a very smart approach if you are undecided about which charities you may want to leave your money to, and the taxman is not one of your chosen beneficiaries. It is also a wise strategy for future generations who will invariably be approached to give to charity. Imagine having the luxury of helping society with pre-tax dollars.

An important element in smart tax planning is being able to see how lowering taxes can be achieved and what is required. All too often, advisors do not spend the time engaging in these types of discussions for a number of reasons including, lack of knowledge or not having the tools to educate and illustrate these concepts to their clients. Charities are equally guilty of not engaging their members with the information in a concrete manner. That is why, historically, the number of bequests to charities has remained in the 4% to 6% range. Guess who is getting the rest after the family? You got it, the taxman.

The solution to this is Giftabulator NOW, Alpha Version 2.0, an estate, financial and philanthropic planning application on a charity’s website with an easy-to-understand model for approaching donors for major gifts and planned giving.  It shows individuals how much they should give to charity now or in their will to reduce their taxes on various assets. Call it Donate to Eliminate.

Link to Article: http://www.wsj.com/articles/tax-smart-philanthropy-made-easy-1408728248

Check out Giftabulator NOW  https://www.giftabulator.com/giftabulator-now.php

Building a list of loyal donors

I hear all too often that organizations don’t have prospects to approach for major or planned gifts. So organizations wait and hold events, use direct mail or try out social media. In other words, the status quo in fundraising over the past 20 years is maintained, with social media being a new version on direct mail.

I can honestly say that building a list of people who have been loyal supporters to charities should be relatively easy. It starts with identifying your loyal, consistent donors who have been giving to you religiously over the past five years or more.

Giftabulator NOW is an ideal tool for you and your team to have discussions with donors about large gifts and how they can be constructed. Please contact me for more information.

https://www.giftabulator.com/giftabulator-now.php